What Statement Does Not Report the Changes in Financial Position

question 103

Multiple Choice

What statement does not report the changes in financial position of the company?

• A) income statement
• B) balance sheet
• C) statement of cash flows
• D) statement of shareholders' equity

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Definitions:

Shareholders

Persons or organizations that possess stock in a corporation, thus holding a stake in the business.

Double Entry System

A method of bookkeeping where every entry to an account requires a corresponding and opposite entry to a different account, effectively balancing the accounting equation.

Accounting

A structured process of noting down, disclosing, and analyzing the financial activities of a business entity.

Income Statement

A financial document that shows a company's revenues, expenses, and net income over a specific period, typically a quarter or year.